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IW-Trends No. 2 1. August 2025 Dominik Enste / Benedict Lorbacher Anti-Foreign Bias in Germany: A Behavioural Economic Analysis of ist Relevance in Structural Change

While economists never cease to emphasise the overall prosperity gains for society as a whole that result from free trade and globalisation, critical attitudes towards globalisation and support for protectionist policies continue to grow in many Western countries.

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A Behavioural Economic Analysis of ist Relevance in Structural Change
IW-Trends No. 2 1. August 2025 Dominik Enste / Benedict Lorbacher

Anti-Foreign Bias in Germany: A Behavioural Economic Analysis of ist Relevance in Structural Change

Dominik Enste / Benedict Lorbacher German Economic Institute (IW) German Economic Institute (IW)

While economists never cease to emphasise the overall prosperity gains for society as a whole that result from free trade and globalisation, critical attitudes towards globalisation and support for protectionist policies continue to grow in many Western countries.

In particular, the structural change resulting from globalisation and the associated short-term loss of jobs are a recurring source of controversy. This phenomenon can be largely ascribed to parochialism, a concept well-known to evolutionary psychology and which manifests itself in economic terms as anti-foreign bias. The present study focuses on the occurence of anti-foreign bias among the German population and differences between age groups and social classes and between the Federal Republic´s sixteen states. The authors show that there are significant differences in the frequency and intensity of anti-foreign bias between the various demographic and social groups. For example, anti-foreign bias is significantly stronger among older than among younger people, and is also more pronounced among the working class and among those with no more than lower secondary education. There are few differences between income groups.

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A Behavioural Economic Analysis of ist Relevance in Structural Change
IW-Trends No. 2 1. August 2025 Dominik Enste / Benedict Lorbacher

Anti-Foreign Bias in Germany: A Behavioural Economic Analysis of ist Relevance in Structural Change

Dominik Enste / Benedict Lorbacher German Economic Institute (IW) German Economic Institute (IW)

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The Honesty-Attitude-Behavior Gap: A Cross-Country Comparison
IW-Trends No. 3 29. September 2026 Dominik Enste / Jennifer Potthoff / Augustin Renz

The Honesty-Attitude-Behavior Gap: A Cross-Country Comparison

Honesty reduces transaction costs and is therefore a prerequisite for effective economic cooperation.

Dominik Enste / Jennifer Potthoff / Augustin Renz IW

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IW-Trends No. 4 10. January 2026 Jennifer Potthoff / Rebecca Gabel

Life Satisfaction in Germany: Trends, Influencing Factors and Political Relevance

Despite their country’s multiple crises, Germans' subjective well-being remains overall buoyant and is currently reaching historic highs similar to those of the 2010s.

Jennifer Potthoff / Rebecca Gabel IW

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